FINRA Regulatory Responsibilities

FINRA’s first responsibility is to register and approve for membership all broker-dealers operating in the United States and to regulate and enforce the regulatory rules that guide their practice.

Under Section 5 of the Exchange Act, all broker-dealers must be registered with the Securities and Exchange Commission (SEC) and become members of FINRA except for: (1) those who operate exclusively outside the boundaries of the U.S. and (2) those who deal only in exempt securities. Exempt securities as defined by the Securities Act of 1933 include government bonds (e.g., municipals), U.S. government securities (e.g., Treasury bi